Property developer Intiland has branched out into the hospitality industry under its subsidiary Intiwhiz running the hotel chain.
The growth of middle class in Indonesia creates stronger purchasing power. And this condition is indeed conducive to the country’s hospitality industry, leading to high demand for budget accommodation.
Property developer Intiland Development, through its subsidiary Intiwhiz International, has taken advantage of the country’s economic situation.
Having established outstanding portfolio that includes middle to high-end residential and industrial estates, as well as mixed-use and high-rise developments, Intiland has aggressively been expanding the business focus on the budget hotel chain, which is operated under the moniker “Whiz Hotel” with Intiwhiz being the hotel operator.
The first Whiz Hotel was opened in Yogyakarta in October 2010, with the three other hotels started their operation in Semarang, as well as Legian and Kuta, Bali the following year.
“We have set the pace in developing 20 more hotels. Our aim is to have as many as 60 hotels operated throughout the country within the next five years,” Moedjianto Soesilo Tjahjono, Intiwhiz’s president and CEO, says.
He furthermore expresses his optimism that the company can achieve the targeted number. “We conducted an extensive research and study prior to commencing the business, revealing that budget hotel is more feasible and more profitable for long-term business growth. The average occupancy for our hotels can exceed 90 percent during the peak season. Even during the lowest season, we manage to have more than fifty percent of all rooms booked.”
Moedjianto is not exaggerated. Whiz Hotel Yogyakarta’s average occupancy rate was more than 70 percent within the first three months of operation.
“The recipe is simple. It’s location. In the hotel business, location truly determines your targeted market, thus paving the way for the future business growth,” he asserts.
Behind the successful operation of Yogyakarta’s Whiz Hotel is the strategic location in Malioboro business district. In Semarang, the hotel stands on Piere Tendean Road, the city’s busy business district.
“We target business travelers visiting those cities. Legian and Kuta have different market segmentation, as Bali is the main tourist destination in Indonesia. They are so far doing great, though. During the peak season, the occupancy rate can reach 100 percent. And we are looking into developing more Whiz hotels in other areas on the island, either as investor or operator,” Moedijanto explains.
He adds that Intiland is always open for investors seeking to engage in a joint venture. Grand Whiz Hotel in Kuta is the first that the company implements a strategic partnership with other investor. Here, Intiwhiz functions as the hospital management operator.
Besides location, Moedijanto stresses the importance of providing optimum comforts for staying guests. “Indonesian people are getting smarter in travelling. Especially business travellers, what they need are basic and clean accommodations as they are most likely to stay outside the hotel throughout the day. Basic still means comfort for us. All Whiz hotels are equipped with comfortable standard mattress, quality shower, practical and functional room layout, and of course free Wi-Fi Internet service.”
Text and photos: Aulia R. Sungkar. Published in HighEnd Mag, May 2012 edition.